Accounts payable turnover is an important measure of liquidity for a retail business.

Question

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Accounts payable turnover is a measure of how quickly a business pays off its suppliers and vendors, which is a crucial aspect of managing liquidity. For retail businesses, who rely heavily on inventory and therefore have significant expenses related to purchasing goods from suppliers, tracking accounts payable turnover is particularly important for maintaining cash flow and managing short-term debt.

Accounts Payable Turnover Is an Important Measure of Liquidity for a Retail